# As consumer spending increases, convenience and security have never been more important
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-15
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Stay Secure: Protect Yourself Against Rising In-Store Fraud
Meta Description: Learn how increased contactless card limits could lead to higher risks of fraud for shoppers and how businesses can protect their customers from falling victim
URL: https://financedigest.com/as-consumer-spending-increases-convenience-and-security-have-never-been-more-importanthtml

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_By_ **_Steve Ritter,_** _CTO at Mitek_

Spending is on the rise – especially in-store, as retail [footfall climbs towards pre-pandemic levels](https://www.ons.gov.uk/economy/economicoutputandproductivity/output/bulletins/economicactivityandsocialchangeintheukrealtimeindicators/9december2021) again. Criminals are already strategizing about how they will capitalise upon this. When you consider that contactless card limits have recently increased, it’s clear that fraudsters could be set for a huge haul this year.

With limits on contactless transactions now extended to £100 at a time, thieves intent on defrauding shoppers may be able to take as much as £300 using a stolen contactless card before [facing any security](https://www.financedigest.com/infosecurity-europe-agenda-spotlights-innovation-as-security-leaders-address-cybersecurity-spend-in-the-face-of-economic-headwinds.html "Infosecurity Europe agenda spotlights innovation as security leaders address cybersecurity spend in the face of economic headwinds") checks. This could mean shoppers hitting the high street face much higher risk of substantial financial [loss than before if their cards](https://www.financedigest.com/uk-card-fraud-losses-climbed-18-percent-in-2015-largest-rise-in-europe.html "UK CARD FRAUD LOSSES CLIMBED 18 PERCENT IN 2015, LARGEST RISE IN EUROPE") are stolen. For [businesses that have seen profits from in-store sales](https://www.financedigest.com/the-ultimate-excel-sales-tracking-templates-for-businesses.html "The Ultimate Excel Sales Tracking Templates For Businesses") plummet during the last eighteen months, it’s clear that to win and retain customers they must offer a fantastic experience whilst also keeping the customer safe from fraud.

**New spending technologies are inspiring new scams**

With [increased consumer spending](https://www.financedigest.com/should-we-be-more-cautious-about-contactless-1-in-4-young-adults-with-contactless-cards-say-theyve-increased-their-spending.html "Should we be more cautious about contactless? 1 in 4 young adults with contactless cards say they’ve increased their spending") come new technologies that make paying for goods faster and easier. But fraudsters are always up to date with the [latest trends](https://www.financedigest.com/e-commerce-report-the-latest-trends-and-forecasts.html "e-Commerce Report: The latest trends and forecasts").

A fraudster is only as good as his tools. Unfortunately, bad actors are constantly adapting to the latest technologies, whether through impersonating businesses and [organisations where people regularly shop or sending phishing emails to collect people’s personal data](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ").

For instance, with more choice of [product and brand at the consumer’s](https://www.financedigest.com/50-of-consumers-wont-spend-more-than-20-minutes-applying-for-financial-products-online.html "50% of consumers won’t spend more than 20 minutes applying for financial products online") fingertips than ever, fraudsters have recently been tricking consumers into buying goods that never existed and will never be received, using long shipping delays as a cover. By the time you realise the company you bought from is unreachable and nowhere to be found online, it may be too late for you to report the [fraud to your bank](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ") and get a refund.

In-store might seem safer than online, but beware. [While contactless payments are tricky](https://www.financedigest.com/the-future-of-contactless-payments.html "The future of contactless payments") for fraudsters to intercept via the paystream, consumers are right to be concerned when it comes to the repercussions of losing their card or having it stolen. We each have a different risk profile. £100 is a lot for some, and a little for others.

Organisations have a responsibility to listen to their customers when it comes to the degree of risk involved in making a transaction with them. It might seem like this is out of retailers’ hands, but it’s not. How can retailers ensure their [customers are protected](https://www.financedigest.com/banks-can-provide-a-protective-shield-to-defend-customers-from-cyber-attack.html "Banks can provide a protective shield to defend customers from cyber attack")?

**Shoppers** [need reassurance of transaction security style=”font-weight: 400;”>](https://www.financedigest.com/why-preparation-for-new-swift-cyber-security-standards-needs-to-start-now.html "‘Why preparation for new SWIFT cyber security standards needs to start now’")

[‘Why preparation for new SWIFT cyber security standards needs to start now’](https://www.financedigest.com/why-preparation-for-new-swift-cyber-security-standards-needs-to-start-now.html "‘Why preparation for new SWIFT cyber security standards needs to start now’")

[In the last two years, companies and consumers alike have been forced to prioritise](https://www.financedigest.com/why-preparation-for-new-swift-cyber-security-standards-needs-to-start-now.html "‘Why preparation for new SWIFT cyber security standards needs to start now’") [health and physical safety](https://www.financedigest.com/occupational-health-and-safety-must-be-brought-back-to-the-forefront-of-esg.html "Occupational Health and Safety must be brought back to the forefront of ESG") above all else. Thanks to the convenience of a simple tap, contactless [payments are on the rise](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns"). However, consumers also expect flexible [payment options when it comes](https://www.financedigest.com/e-commerce-without-frontiers-not-when-it-comes-to-payment-2.html "E-commerce without frontiers? Not when it comes to payment") to shopping.

While apps like Apple [Pay already offer unlimited contactless payments without customers](https://www.financedigest.com/shell-energy-to-pay-for-overcharging-price-cap-customers-ofgem.html "Shell Energy to pay for overcharging price cap customers -Ofgem") expressing concerns, the risk is different for cards. Apps require a pin, face or fingerprint scan – a layer of [security contactless cards simply don’t](https://www.financedigest.com/dont-let-the-promises-of-virtual-desktop-security-cloud-your-judgement.html "Don’t let the promises of virtual desktop security cloud your judgement") have.

When you use [Apple Pay](https://www.financedigest.com/supporting-apple-pay-integration-in-japan.html "Supporting Apple Pay Integration in Japan") for instance, you verify yourself with either your fingerprint or Face ID, in addition to giving your payment details. This checks off the ‘have’ and the ‘are’.

Alternatively, identity verification [technologies are used by payments](https://www.financedigest.com/from-the-experts-5-payment-technology-trends-to-look-out-for-in-2016.html "FROM THE EXPERTS: 5 PAYMENT TECHNOLOGY TRENDS TO LOOK OUT FOR IN 2016") providers like PayPal. Everyone who signs up to PayPal, whether to send money around the [world or to potentially buy or sell online](https://www.financedigest.com/jetlearn-the-worlds-first-web-3-0-online-academy-for-k-12-raises-e1-2m-in-seed-round-to-launch-its-platform-in-the-uk.html "JetLearn, the world’s first Web 3.0 online academy for K-12, raises €1.2m in seed round to launch its platform in the UK"), has several hoops to jump through to prove they are who they say they are. These hoops [include identity verification technologies](https://www.financedigest.com/top-5-trends-in-decentralised-self-sovereign-identity-ssi-and-privacy-preserving-technology-in-web-3-0.html "Top 5 trends in Decentralised Self-Sovereign Identity (SSI) and Privacy-Preserving Technology in Web 3.0 ").

The solution for contactless [payment security could](https://www.financedigest.com/allpay-signs-with-eckoh-to-secure-telephone-payments.html "allpay signs with Eckoh to secure telephone payments") take a leaf from Apple pay’s book. By verifying your identity using a selfie and a photo of your ID document, shoppers could feel more [secure – while still](https://www.financedigest.com/digital-experience-and-security-the-crucial-combination-for-banks.html "Digital experience and security – the crucial combination for banks") only taking a few seconds to process. What’s more, [banks and payments providers often ramp up this verification for large transactions](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS") or after a period of consistent transactions – adding another layer of security to what could be seen as ‘riskier’ payments.

**Defending consumers from fraudsters**

Moving forward, the highest priority for retailers and businesses seeking customer loyalty is to implement secure [payment methods](https://www.financedigest.com/freelancer-payments-methods-what-you-should-know.html "Freelancer Payments Methods: What You Should Know"). The first step in cultivating a sense of [trust with consumers is to adopt secure](https://www.financedigest.com/the-push-and-pull-of-identity-security-adoption-in-the-financial-services-industry.html "The push and pull of identity security adoption in the financial services industry") technologies. This will give customers both a high degree of security and convenience.

To build that trust, [financial institutions must listen to the full spectrum of customer needs when they design new services](https://www.financedigest.com/how-financial-services-are-overhauling-security-to-defend-against-spoofing-scams.html "How financial services are overhauling security to defend against spoofing scams"), and continually balance this with security. They must be ten steps ahead of fraudsters, identifying their patterns and [managing the risks](https://www.financedigest.com/aon-launches-new-catastrophe-model-to-manage-the-risk-of-icelands-most-disastrous-peril-earthquake.html "Aon launches new catastrophe model to manage the risk of Iceland’s most disastrous peril: Earthquake").  Fundamentally, tech [companies have a responsibility to help retailers protect](https://www.financedigest.com/5-ways-to-protect-your-company-from-cyber-security-threats.html "5 Ways to Protect Your Company From Cyber Security Threats") people’s money, identities, and data. Consumers make the most of their [digital identities](https://www.financedigest.com/why-an-orchestrated-digital-identity-strategy-is-vital-for-financial-organisations-in-fighting-fraud.html "Why an orchestrated digital identity strategy is vital for financial organisations in fighting fraud") only when these companies live up to their responsibilities.


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